This bill aims to prohibit the use and sale of algorithmic devices that assist landlords in setting or recommending rent prices and occupancy rates for residential dwelling units in New Jersey. It establishes that it is unlawful for landlords to utilize such devices, which are defined as software programs that leverage non-public competitor data to influence rental decisions. The bill also outlines that each month of violation and each residential unit affected will count as a separate violation, allowing for significant penalties. The Attorney General is empowered to take civil action against violators, seeking damages, injunctive relief, restitution, and civil penalties of up to $1,000 per violation, along with the recovery of reasonable attorneys' fees if successful in court.

Additionally, the bill amends existing law to include definitions for "algorithmic device" and "non-public competitor data," clarifying what constitutes these terms within the context of the New Jersey Antitrust Act. The legislation does not restrict the use of software that relies on internal or publicly available data for managing rental units, nor does it regulate the rent amounts landlords can charge. This measure is a response to concerns about the impact of algorithmic devices on rental markets, which have been linked to inflated rents, increased vacancy rates, and a consolidation of ownership among large corporate landlords.

Statutes affected:
Introduced: 56:9-2